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Important Home Insurance Coverage Add-Ons To Consider

by Raymond Gibson

Some homeowners are unaware that their policies do not cover certain types of damage. This can be confusing when they need to file a claim, and it gets denied. There are different types of add-on coverage that can be added to standard home insurance. The following points identify a few types of add-ons.

Flood Insurance

Some policies do not cover damage from flooding. Individuals who reside in areas where floods have occurred in the past need to strongly consider this type of coverage. Sometimes, floods create damage that makes homes temporarily inhabitable. Flood insurance ensures that temporary housing costs are covered while a home is being repaired. Without this add-on, homeowners would need to pay their repair, rebuilding, and housing costs. 

Equipment Breakdown Insurance

This type of add-on ensures the replacement of electronics and appliances that get damaged. It offers additional protection and can be viewed as offering stronger protection than a standard policy. Standard policies cover damages to these items but the payout is usually based on what caused the damages. An insurance company could deny a claim depending on what caused the damage or loss. Equipment breakdown insurance gives homeowners peace of mind that regardless of the events surrounding the damage, they are covered.

Homebased-Business Insurance

Today, more and more individuals have transitioned to working from home. They may be unaware that they should get a home-based business add-on to cover their work area. Some business owners have customers who visit their homes for services. If an accident occurs that is business-related, the claim could get denied without the add-on coverage. Homeowners who do not have would be responsible for compensating their injured customers and paying their medical bills. There are also risks associated with damaged equipment.

Extended Reconstruction Insurance

It is important to routinely review insurance policies with an agent. It may cost more to repair a home that has been damaged by water, a storm, or a fallen tree. This add-on ensures that all reconstruction costs are covered. If the policy only covers a certain amount, this add-on ensures that homeowners do not have to worry about paying for damages out-of-pocket.

A home insurance provider is a good resource to use to learn more about add-on policies. They can assist with reviewing existing policies and determining whether additional coverage is a wise decision. Individuals who have made upgrades to their homes since their original policy was purchased need to strongly consider a policy review with an agent. If certain uncovered risks are identified, an agent might recommend an add-on. Certain factors such as where a home is located can be used to determine if add-on coverage is needed. 

Reach out to a homeowners insurance service to find out more.